Each year, thousands of life policies are ceded to financial istitutions, usually as security for a debt such as a bond, loan or overdraft.Cessions play a important role for many people in gaining access to finance, giving the lender a comfort in the knowledge that their loan will be repaid in the event of their death. Unfortunately, few people take the time to understand the implications of a cession and the impact on nominated beneficiaries, usually loved ones. Even fewer people actually cancel cessions once their debts have been paid off, leaving potentially serious implications for beneficiaries should the policyholder die or become disabled. The best person to help you with this is your financial adviser.
Craig Harding, managing director of Altrisk says that policyholders need to know the ins and outs of cessions and consider all the scenarios and implications for their beneficiaries before signing on the dotted line. "The reality is that if you cede a life policy, or even a portion thereof to another party, the law provides that the cessionary will be paid before any other party. It is also not necessary for the beneficiaries to give any consent to the ceding of a policy and they may not even be aware that a cession exists.
"The harsh reality is that ceding an insurance policy, for example to provide security for a loan such as a mortgage, could leave your loved ones without any source of income if you die. The cessionary will take what's due to them first and any surplus could end up in your estatewhich could take months to settle before they see any financial relief," explains Harding.
Given the above implications, it's vital that policyholders understand what a cession is, the different types of cessions, how to implement and cancel a cession and what the considerations are before ceding a policy. Once again, the best thing to do is to consult your financial adviser so they can factor existing cessions into your financial plan. The status of cessions should then be part of the regular financial review.
What is a cession?
A cession is the transfer of the rights to a policy from one party to another. The party acquiring the rights is called the cessionary. The party giving the up the rights is called the cedent. A policy can be ceded in two ways:
-Outright cession- all rights in terms of the policy are transferred to the cessionary and all proceeds of the policy are paid directly to the cessionary in the event of a claim and not the previous owner, his/ her beneficiaries or estate.
- Collateral security cession- in this instance the policy will be ceded as security for a loan, typically for a home loan. The cessionary's rights are limited to receiving the lower of the claim proceeds and the amount of the policy owner's liability to the cessionary. All other rights of ownership of the policy remain with the ploicy owner.
If the policy is ceded, the rights of the cessionary takes precedent and will be paid before any payments to nominated beneficiaries.
Implementing a cession
Before ceding a life policy there are a number of steps that need to be followed:
- check your policy document- it should contain:
*rules relating to the nomination of beneficiaries or to ceding the policy eg can the policy be ceded.
*the requirements (including forms)to cede a policy or nominate a beneficiary
* how a cession will affect existing beneficiaries
* how to cancel a cession.
- Check the debt agreement you have with the bank or creditor may contain provisions regarding cessions and may stipulate how the creditor will deal with any surplus funds in excess of your liability.
- Go through the cession document is where you will cede your rights to the policy as security for a debt and may also stipulate the effect the cession will have on an existing beneficiary nomination.
- The beneficiary nomination document names the beneficiary to a policy and it may also contain provisions regarding the effect than any subsequent security cession will have an existing beneficiary nomination.
-Make sure you understand who has the right to cancel the cession. "The exact effects od ceding a policy as security for a debt will be governed by the wording of the various documents involved, so it's vital to thoroughly study these documents and asess their impact in various scenarios
- your broker or financial adviser will be an important source of information in this regard,"says Harding.
You should be aware of the following:
>Where the creditor pays any balance into an estate, it may attract additional unforseen costs.
>Even if you have paid off your debt but failed to cancel the cession, the insurer will pay the policy proceeds to the cessionary instead of to your nominated beneficiaries. Aside from the possible unforseen costs, there is also the time required to resolve the estate to consider and its impact on the beneficiary's liquidity.
Cancelling a cession
In order to reinstate the beneficiary and policyholder's rights the cession must be cancelled. "In the case of an outright cession, or a collateral cession where the right to revocation has also been ceded, the institution to which the cession was made must cancel it in writing. This releases you of your responsibility and confirms that you no longer have a debt in this regard. which in turn must be communicated to the insurer. In some situations a cession will revoke an existing beneficiary nomination even if the cession has been cancelled- in this instance it is essential that you make a new nomination and record this with your insurance company," explains Harding.
Showing posts with label General. Show all posts
Showing posts with label General. Show all posts
Wednesday, April 20, 2011
Thursday, August 19, 2010
Financial Planning for the Modern Woman- Part 2
Liberty Legal Focus
There is an increasing worldwide trend for partners in a relationship not to get married, but to simply live together or "co- habit" has its own consequences as far as taxes and financial implications are concerned.
Tax implications of a "common law union"
In South African law there is no such thing as "common law spouses" even though the term is brandished aroud so often that factually it may seem to exist. In terms of our tax legislation, and specifically the Taxation Laws Amendment Act 5 of 2001, the definition of spouse was extended to include , among others, "persons who are in a same- sex or heterosexual union with which the Commissioner is satisfied is intended to be permanent". The impact of this legislation is that people who fall within this definition are for purposes of estate duty, capital gains tax and donations tax treated as spouses- the section 4(q) estate duty deduction, CGT roll over's and tax free donations will be allowed between these parties. This is obviously very useful when it comes to personal financial planning and in particular estate planning. While the legislation does state that this kind of union, unless there is proof to the contrary, will be treated as excluding community of property, it does not go very far in terms of spelling ot the parties' rights and obligations in terms of their proprietary interests.
What risks should parties who co- habit instead of marrying be aware of?
A couple of pertinent questions may answer this:
What happens to the assets of one of the parties on death in the absence of a valid will bequeathing those assets to the survivor? The Intestate Succession Act 81 of 1987 specifically deals only with parties married in terms of the Matrimonial Property Act 88 of 1984 and as such precludes co- habiting life partners. The constitutional court has recently made several rulings to the effect that same sex partners and partners married in terms of Muslim or Hindu tenets should also be protected in terms of the Intestate Succession Act, but no rulings has been made regarding heterosexual life partners. Therefore, the survivor would have no legal claim against the estate of the deceased.
It is thus critical that life partners make certain that they have current and up to date wills in place reflecting their intentions and wishes.
Maintenance of Surviving Spouses Act
Likewise, the Maintenance of Surviving Spouses Act, 27 of 1990 only caters for "spouses" who are married in terms of the Matrimonial Property Act. The life partner who may have been co - habiting with the deceased before his/ her death and been completely dependant on this person for maintenance would have no claim whatsoever against his/ her estate. (Note that, in terms of the Pension Funds Act 24 of 1956, the person would qualify as a factual dependant and would be able to lodge a claim against those benefits, if any).
A financial needs analysis must be conducted in order to ascertain what the financial implications of the death of one of the life partners would be on the survivor and if there is a need, this need must be catered for.
What happens if the life partners decide to go their seperate ways and split up?
In 2008 the Domestic Partnership Bill was published which sought to provide some clarity and direction on these matters. Basically it distinguished between registered domestic partnerships and unregistered domestic partnerships. In terms of the Bill, parties to a registered domestic partnership would automatically be entitled to a claim in terms of both the Intestate Succession Act and the Maintenance of Surviving Spouses Act, while those in an unregistered domestic partnership would need to go to court for the relief sought. This Bill also clearly stipulated that such relationships would operate as if they were out of community of property, and so would automatically include the accrual system. On termination of the relationship for whatever reason, the parties would get to share in the growth of each other's estates from inception of the partnership. This Bill has not been taken any further and as such cannot be relied upon by parties cohabiting to protect their rights or interests.
How then do life partners protect themselves and regulate their affairs, other than by having a valid will? What happens practically when the relationship ends?
Universal partnership
One of the parties could allege that what is called a universal partnership exists between them. Basically, what is being said is that in terms of the law of contract, an agreement has been entered into between the parties in which they are to share their assets equally. All the terms necessary to prove a valid contract of partnership would need to be proved:
It is not necessarily easy to prove that a universal partnership exists, for example you will need to show under the "benefit for both parties" that both parties were actually better off together, than they were seperately. Invariably the parties will have to consult attorneys and may even have to go to court. This costs a lot of money, and those people who lack the financial resources to be able to afford legal fees may end up with nothing at all.
The Alternative: A Domestic Partnership Agreement
All parties co- habiting should take the same view as people in a business partnership with each other. They should enter into a legal agreement to regulate their proprietary affairs so that should the partnership terminate, there will be binding guidelines in place to determine how the property will be split up.
The best time to enter into this agreement is when both parties are on good terms with each other and have a long term view on the relationship. It is too late if you wait until one of the parties whishes to go his or her own way. A domestic partnership agreement deals with life partnerships and is similar to entering into an antenuptial contract. It will detail each party's rights and obligations, for example:
Careful thought and consideration needs to be given when doing financial planning for life partners, especially when it comes to protecting their wealth in the event of death or termination of that partnership.
There is an increasing worldwide trend for partners in a relationship not to get married, but to simply live together or "co- habit" has its own consequences as far as taxes and financial implications are concerned.
Tax implications of a "common law union"
In South African law there is no such thing as "common law spouses" even though the term is brandished aroud so often that factually it may seem to exist. In terms of our tax legislation, and specifically the Taxation Laws Amendment Act 5 of 2001, the definition of spouse was extended to include , among others, "persons who are in a same- sex or heterosexual union with which the Commissioner is satisfied is intended to be permanent". The impact of this legislation is that people who fall within this definition are for purposes of estate duty, capital gains tax and donations tax treated as spouses- the section 4(q) estate duty deduction, CGT roll over's and tax free donations will be allowed between these parties. This is obviously very useful when it comes to personal financial planning and in particular estate planning. While the legislation does state that this kind of union, unless there is proof to the contrary, will be treated as excluding community of property, it does not go very far in terms of spelling ot the parties' rights and obligations in terms of their proprietary interests.
What risks should parties who co- habit instead of marrying be aware of?
A couple of pertinent questions may answer this:
- If the relationship should end because the parties fall out, what will happen to the property acquired during the course of the relationship?
- Does provision for retirement include both partners or will both be reliant on one partners pension/ retirement fund?
- Will either parties need or be entitled to maintenance should the relationship terminate?
- What is the intention of the parties if either dies, in terms of the other inheriting?
- Is there sufficient provision for the surviving partner and dependants?
What happens to the assets of one of the parties on death in the absence of a valid will bequeathing those assets to the survivor? The Intestate Succession Act 81 of 1987 specifically deals only with parties married in terms of the Matrimonial Property Act 88 of 1984 and as such precludes co- habiting life partners. The constitutional court has recently made several rulings to the effect that same sex partners and partners married in terms of Muslim or Hindu tenets should also be protected in terms of the Intestate Succession Act, but no rulings has been made regarding heterosexual life partners. Therefore, the survivor would have no legal claim against the estate of the deceased.
It is thus critical that life partners make certain that they have current and up to date wills in place reflecting their intentions and wishes.
Maintenance of Surviving Spouses Act
Likewise, the Maintenance of Surviving Spouses Act, 27 of 1990 only caters for "spouses" who are married in terms of the Matrimonial Property Act. The life partner who may have been co - habiting with the deceased before his/ her death and been completely dependant on this person for maintenance would have no claim whatsoever against his/ her estate. (Note that, in terms of the Pension Funds Act 24 of 1956, the person would qualify as a factual dependant and would be able to lodge a claim against those benefits, if any).
A financial needs analysis must be conducted in order to ascertain what the financial implications of the death of one of the life partners would be on the survivor and if there is a need, this need must be catered for.
What happens if the life partners decide to go their seperate ways and split up?
In 2008 the Domestic Partnership Bill was published which sought to provide some clarity and direction on these matters. Basically it distinguished between registered domestic partnerships and unregistered domestic partnerships. In terms of the Bill, parties to a registered domestic partnership would automatically be entitled to a claim in terms of both the Intestate Succession Act and the Maintenance of Surviving Spouses Act, while those in an unregistered domestic partnership would need to go to court for the relief sought. This Bill also clearly stipulated that such relationships would operate as if they were out of community of property, and so would automatically include the accrual system. On termination of the relationship for whatever reason, the parties would get to share in the growth of each other's estates from inception of the partnership. This Bill has not been taken any further and as such cannot be relied upon by parties cohabiting to protect their rights or interests.
How then do life partners protect themselves and regulate their affairs, other than by having a valid will? What happens practically when the relationship ends?
Universal partnership
One of the parties could allege that what is called a universal partnership exists between them. Basically, what is being said is that in terms of the law of contract, an agreement has been entered into between the parties in which they are to share their assets equally. All the terms necessary to prove a valid contract of partnership would need to be proved:
- That the partnership was entered into for the benefit of both parties;
- That the purpose of the partnership was to generate a profit;
- That both parties made a contribution to the partnership- financial or otherwise, and
- That the contract is legitimate.
It is not necessarily easy to prove that a universal partnership exists, for example you will need to show under the "benefit for both parties" that both parties were actually better off together, than they were seperately. Invariably the parties will have to consult attorneys and may even have to go to court. This costs a lot of money, and those people who lack the financial resources to be able to afford legal fees may end up with nothing at all.
The Alternative: A Domestic Partnership Agreement
All parties co- habiting should take the same view as people in a business partnership with each other. They should enter into a legal agreement to regulate their proprietary affairs so that should the partnership terminate, there will be binding guidelines in place to determine how the property will be split up.
The best time to enter into this agreement is when both parties are on good terms with each other and have a long term view on the relationship. It is too late if you wait until one of the parties whishes to go his or her own way. A domestic partnership agreement deals with life partnerships and is similar to entering into an antenuptial contract. It will detail each party's rights and obligations, for example:
- Their respective financial obligations to the joint home;
- Their rights and obligations towards each other;
- Rights and obligations regarding jointly owned property, including the division of jointly owned property.
Careful thought and consideration needs to be given when doing financial planning for life partners, especially when it comes to protecting their wealth in the event of death or termination of that partnership.
Monday, August 16, 2010
Financial Planning for the Modern Woman
Michelle Human, Legal Marketing Specialist
Can the modern woman really have it all? Today, women have more oppertunities, choices and challenges than ever before. Women need to take control of their financial planning to make sure that they own their lives, especially in the event of a life- changing situation. Here are some things to consider when it comes to taking charge of your financial freedom.
Look after yourself first
A woman needs to have a financial plan that caters for her own needs.
If she has children or is thinking about starting a family, her retirement plan must take into account a possible break in employment, even if only for a short time, while she is on maternity leave.
If it takes a dual income to run a family now, then a dual income will also be required at retirement to maintain the standard of living.
Financial protection in times of crisis
According to the CANSA Association, 1 in 29 women is diagnosed with breast cancer, every year. The effects of such a diagnosis can be devastating, both emotionally and financially.
Making sure that you have cover in place that will pay out in an event of such a diagnosis will at least give you the peace of mind that your financial wellbeing is taken care of. Comprehensive critical illness cover will make sure that funds are available to protect your family and their lifestyle. Consider the impact that this type of disease could have on your lifestyle:
The last thing any blushing bride wants to consider is the fact that her marriage may come to an abrupt end, either as a result of divorce or death. Making sure that you understand the law relating to your marriage could save you heartache in years to come.
The three marital regimes provided for in terms of the Matrimonial Property Act:
When a woman starts a family she may choose to leave formal employment to be a full- time mom or work reduced hours with a flexible schedule. Here are some things to consider when you have children:
Generally, women live approximately seven years longer than men. A women of 65 will need approximately 15% more than a man of the same age to provide the same pesnsion for the rest of her life, so women really need to put careful thought into their retirement plans.
Leaving a legacy
All too often women underestimate the need for a valid will as part of a comprehensive financial plan. It is not as simple as leaving all your assets to your spouse or significant other.
A will gives you the oppertunity to provide a guardian for your child in the event of both parents passing away. You may wish to provide for your children using a testamentary trust. This allows you to choose the trustees who will manage the funds for your children and give certain instructions regarding distribution of income and capital. Consider that your surviving spouse may remarry or have more children. Without a will, there are no guarentees that your children will receive the legacy you intended for them.
Going through the process of drafting your will also allows you to consider the impact of the estate duties, income tax and expenses that can easily erode the inheritance you thought you were leaving.
Life cover is an affordable way of ensuring that cash is readily available when your dependants need it most.
Can the modern woman really have it all? Today, women have more oppertunities, choices and challenges than ever before. Women need to take control of their financial planning to make sure that they own their lives, especially in the event of a life- changing situation. Here are some things to consider when it comes to taking charge of your financial freedom.
Look after yourself first
A woman needs to have a financial plan that caters for her own needs.
If she has children or is thinking about starting a family, her retirement plan must take into account a possible break in employment, even if only for a short time, while she is on maternity leave.
If it takes a dual income to run a family now, then a dual income will also be required at retirement to maintain the standard of living.
Financial protection in times of crisis
According to the CANSA Association, 1 in 29 women is diagnosed with breast cancer, every year. The effects of such a diagnosis can be devastating, both emotionally and financially.
Making sure that you have cover in place that will pay out in an event of such a diagnosis will at least give you the peace of mind that your financial wellbeing is taken care of. Comprehensive critical illness cover will make sure that funds are available to protect your family and their lifestyle. Consider the impact that this type of disease could have on your lifestyle:
- Who would take care of your children? Whould you need an au pair to fetch them from school and other activities, supervise homework and dinnertime?
- Would you need someone to take care of household chores or drive you to treatments and doctor's appointments?
- Make sure that you can illiminate all other worries and focus on getting the best treatment possible.
The last thing any blushing bride wants to consider is the fact that her marriage may come to an abrupt end, either as a result of divorce or death. Making sure that you understand the law relating to your marriage could save you heartache in years to come.
The three marital regimes provided for in terms of the Matrimonial Property Act:
- Community of Property- the parties to the marriage share all profits and losses and are seen to have one undivided estate. Thus everything is shared equally.
- Ante- nuptial- contract (ANC)- this automatically includes the accrual system and is a community of profit, but not a community of loss, which comes into effect when the marriage ends. This is probably the most popular marriage regime of modern times. Assets required before the marriage may be exluded, but any growth in assets acquired during the marriage is shared equally when the marriage comes to an end.
- Ante- nuptial contract excuding accrual- the accrual system is expressly excluded and the parties have completely seperate estates. This is a marital regime often used where parties have already acquired significant wealth prior to their marriage.
When a woman starts a family she may choose to leave formal employment to be a full- time mom or work reduced hours with a flexible schedule. Here are some things to consider when you have children:
- Are your existing retirement benefits transferred into a Preservation Fund or Retirement Annuity to create a nest egg for the future?
- Are you accessing this amount now to reduce your costs and make your decision to stay at home more viable?
- Does the reduced income in the household allow you to continue with some form of retirement savings?
Generally, women live approximately seven years longer than men. A women of 65 will need approximately 15% more than a man of the same age to provide the same pesnsion for the rest of her life, so women really need to put careful thought into their retirement plans.
Leaving a legacy
All too often women underestimate the need for a valid will as part of a comprehensive financial plan. It is not as simple as leaving all your assets to your spouse or significant other.
A will gives you the oppertunity to provide a guardian for your child in the event of both parents passing away. You may wish to provide for your children using a testamentary trust. This allows you to choose the trustees who will manage the funds for your children and give certain instructions regarding distribution of income and capital. Consider that your surviving spouse may remarry or have more children. Without a will, there are no guarentees that your children will receive the legacy you intended for them.
Going through the process of drafting your will also allows you to consider the impact of the estate duties, income tax and expenses that can easily erode the inheritance you thought you were leaving.
Life cover is an affordable way of ensuring that cash is readily available when your dependants need it most.
Tuesday, April 20, 2010
What value would I add to you the consumer as a healthcare advisor?
Advise you as a member of a medical scheme on:
• Which medical scheme to select
• Your rights when changing medical schemes
• The consequences of changing schemes
• The details and procedures applicable to your new scheme
• Annual option changes
• Changes in legislation and the impact thereof
• Giving on-going feedback on the financial and administrative stability of your chosen scheme
Which medical scheme to select
There are a significant number of medical aids to choose from, and each of these has a number of benefit options which complicates the selection process for a member without the support of an informed and experienced professional.
Medical schemes and administrators cannot be expected to supply independent information on how their products compare to their competitors, and which of their options would be most suitable to the health needs of the member.
This is where the Healthcare Advisor (like myself) adds value as they have clients across a broad range of medical schemes and will be able to identify these issues and advise members accordingly.
Your rights when changing schemes
The legislation governing the medical scheme environment is complex and medical schemes often abuse the fact that most members do not understand their rights.
We can assist you to ensure that the law is applied in the manner that it was intended to be applied.
The consequences of changing medical scheme membership
There are many important issues members need to consider when they decide to change medical schemes during a calendar year and these are often overlooked with dire consequences to the medicals scheme member. Some examples:
Savings account claw backs: Members who have spent their full annual allocation will have to repay the proportion relating to the balance of the year when they leave the medical scheme
Pro-rated benefits: Joining a new medical scheme partially through the year will mean that members only have access to a pro-rated portion of the benefits offered by the new scheme.
Focusing on cost savings and not on the benefit reductions that may accompany these cost savings may leave the members at risk
Not considering changes in any specialized benefits. Members changing schemes with specific medical conditions might not properly evaluate the level of benefit on the new scheme for these specific conditions.
Member education
It is normally the Healthcare Advisor that spends time with individuals, or in group sessions educating them about the benefits, requirements and potential pitfalls of the members’ chosen medical scheme with regards to issues like hospital pre-certification, chronic medication applications, generic versus ethical medication cover etc.
Annual option changes
Most medical schemes only allow members to change options once a year and this is the only opportunity a member gets to ensure that they are on the correct health plan to suit their health and financial needs.
Healthcare Advisors add value by proactively assisting the member to evaluate the option they are on. It is also in your best interest as a member to be aware of developments within other medical schemes over this period so that you can compare your current scheme against others. The Healthcare Advisor fulfils a very real and valuable role to medical scheme members over this time.
Changes in legislation and the impact thereof
Healthcare advisors make sure members are notified of these changes as you may be personally affected by these changes.
Changes to the benefit structures and/or procedures applicable to your scheme and the impact thereof
Again Healthcare Advisors offer this service to members, where medical schemes are slow to disseminate such information.
Ongoing feedback on the financial and administrative stability of your chosen scheme
No medical scheme will admit to falling solvency ratios and financial pressures, which could translate into higher than average increases for members. Healthcare Advisors are able to keep members informed of the financial stability of schemes, and very often are able to warn members in advance of what to expect from a medical scheme that is under financial pressure.
I discussed a couple of areas where I can add value in your lives, either as an individual or as an Employer. Please do not hesitate to contact me should you have any questions.
• Which medical scheme to select
• Your rights when changing medical schemes
• The consequences of changing schemes
• The details and procedures applicable to your new scheme
• Annual option changes
• Changes in legislation and the impact thereof
• Giving on-going feedback on the financial and administrative stability of your chosen scheme
Which medical scheme to select
There are a significant number of medical aids to choose from, and each of these has a number of benefit options which complicates the selection process for a member without the support of an informed and experienced professional.
Medical schemes and administrators cannot be expected to supply independent information on how their products compare to their competitors, and which of their options would be most suitable to the health needs of the member.
This is where the Healthcare Advisor (like myself) adds value as they have clients across a broad range of medical schemes and will be able to identify these issues and advise members accordingly.
Your rights when changing schemes
The legislation governing the medical scheme environment is complex and medical schemes often abuse the fact that most members do not understand their rights.
We can assist you to ensure that the law is applied in the manner that it was intended to be applied.
The consequences of changing medical scheme membership
There are many important issues members need to consider when they decide to change medical schemes during a calendar year and these are often overlooked with dire consequences to the medicals scheme member. Some examples:
Savings account claw backs: Members who have spent their full annual allocation will have to repay the proportion relating to the balance of the year when they leave the medical scheme
Pro-rated benefits: Joining a new medical scheme partially through the year will mean that members only have access to a pro-rated portion of the benefits offered by the new scheme.
Focusing on cost savings and not on the benefit reductions that may accompany these cost savings may leave the members at risk
Not considering changes in any specialized benefits. Members changing schemes with specific medical conditions might not properly evaluate the level of benefit on the new scheme for these specific conditions.
Member education
It is normally the Healthcare Advisor that spends time with individuals, or in group sessions educating them about the benefits, requirements and potential pitfalls of the members’ chosen medical scheme with regards to issues like hospital pre-certification, chronic medication applications, generic versus ethical medication cover etc.
Annual option changes
Most medical schemes only allow members to change options once a year and this is the only opportunity a member gets to ensure that they are on the correct health plan to suit their health and financial needs.
Healthcare Advisors add value by proactively assisting the member to evaluate the option they are on. It is also in your best interest as a member to be aware of developments within other medical schemes over this period so that you can compare your current scheme against others. The Healthcare Advisor fulfils a very real and valuable role to medical scheme members over this time.
Changes in legislation and the impact thereof
Healthcare advisors make sure members are notified of these changes as you may be personally affected by these changes.
Changes to the benefit structures and/or procedures applicable to your scheme and the impact thereof
Again Healthcare Advisors offer this service to members, where medical schemes are slow to disseminate such information.
Ongoing feedback on the financial and administrative stability of your chosen scheme
No medical scheme will admit to falling solvency ratios and financial pressures, which could translate into higher than average increases for members. Healthcare Advisors are able to keep members informed of the financial stability of schemes, and very often are able to warn members in advance of what to expect from a medical scheme that is under financial pressure.
I discussed a couple of areas where I can add value in your lives, either as an individual or as an Employer. Please do not hesitate to contact me should you have any questions.
Tuesday, February 16, 2010
Financial Health in Mid Forties & Fifties
Retirment is a scary thought. You are without an income for the most part, unemployable. If you aren't prepared, you face an uncomfortable and uncertain future.
Many business owners get so caught up in the running of their business, they forget to think about the future. But when it comes to retirement, you can't afford to seperate your personal finances from those in your business. At the same time, you have the well- being of your employees (for those of you that have employees). Even though there is no current law that you have to provide for their retirement, it's your moral duty to at least help them plan for the future.
None of us can predict the future. But you need to ensure that you are prepared for eventualities like death, disability, illness and dread disease. The reality is that they can hit you and your business or family hard.And imagine it happened to one of your partners, shareholders or employees. What if you lost them to death or disability? It's not a pleasant thought, but think of the capital you'd need to replace key employees, settle loans or buy out a partner. What if you didn't have enough? You'd risk losing everything you've worked so hard to create.
The older we get the more dificult it is to get this type of insurance. Is yours in place?
Each of us have different needs and goals in life. Therefore our financial solutions would differ. In our fourties we should know what our goals are, or at least have some indication as to how we're going to reach these goals? Or maybe you've reached most of your goals and you're ready to retire and travel the world? Have you got it all planned?
Your Will?
Your Medical Aid?
Financially sound, with enough options to cater for our needs, ie our needs get bigger the older we are?
Many business owners get so caught up in the running of their business, they forget to think about the future. But when it comes to retirement, you can't afford to seperate your personal finances from those in your business. At the same time, you have the well- being of your employees (for those of you that have employees). Even though there is no current law that you have to provide for their retirement, it's your moral duty to at least help them plan for the future.
None of us can predict the future. But you need to ensure that you are prepared for eventualities like death, disability, illness and dread disease. The reality is that they can hit you and your business or family hard.And imagine it happened to one of your partners, shareholders or employees. What if you lost them to death or disability? It's not a pleasant thought, but think of the capital you'd need to replace key employees, settle loans or buy out a partner. What if you didn't have enough? You'd risk losing everything you've worked so hard to create.
The older we get the more dificult it is to get this type of insurance. Is yours in place?
Each of us have different needs and goals in life. Therefore our financial solutions would differ. In our fourties we should know what our goals are, or at least have some indication as to how we're going to reach these goals? Or maybe you've reached most of your goals and you're ready to retire and travel the world? Have you got it all planned?
Your Will?
Your Medical Aid?
Financially sound, with enough options to cater for our needs, ie our needs get bigger the older we are?
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